TD shares lost $1.26 to $72.24 as it said fourth quarter earnings rose 58 per cent to $1.57 billion. Excluding one-time items, the bank earned $1.77 a share, much higher than the $1.53 a share that analysts expected.

CIBC’s quarterly profit jumped 59 per cent to $794 million due mainly to wholesale banking income, the company said. Excluding one-time items, the bank earned $1.87 a share, six cents better than analysts expected. Its shares moved 81 cents lower to $72.10.

North American indexes surged about four per cent Wednesday after the central banks of Canada, Europe, the U.S., Britain, Japan and Switzerland made it cheaper for banks to borrow U.S. dollars, helping them to operate smoothly at a time of tight credit.

Fears of more financial turmoil in Europe have already left some European banks dependent on central bank loans to fund their daily operations. Other banks are wary of lending to them for fear of not getting paid back.

The co-ordinated action greatly alleviated those worries by cutting short-term borrowing rates to banks, giving them much easier access to money.

But initial euphoria over the central bank move wore off somewhat Thursday and analysts say the real boost to the markets might come only if European leaders announce a dramatic action at the summit on the debt crisis next week.

“They really have to get down and deal seriously with a funding problem within Europe that isn’t just going to get up all of a sudden and go away,” said Fred Ketchen, manager of equity trading at Scotia Capital.

“As far as I’m concerned, until there is some greater visibility, than what we have now, the doubts will remain.”

Markets had advanced Wednesday on news that China will ease lending and encourage growth.

China’s central bank announced that the amount of money China’s commercial lenders must hold in reserve will be cut. Lending has been tightened as Beijing dealt with unacceptably high levels for inflation, especially for food but price pressures have moderated recently.

The move to encourage lending in China was especially welcome after business surveys released Thursday showed manufacturing contracted in November for the first time in nearly three years.

China has been a rare bright spot for the global economy since the financial crisis of 2008. Its strong growth has been particularly helpful for the resource-heavy TSX as strong demand has boosted demand for commodities such as oil and metals.

Meanwhile, commodity prices were mixed with January crude on the New York Mercantile Exchange off six cents to US$100.30 a barrel. The TSX energy sector lost 0.63 per cent as Cenovus Energy (TSX:CVE) gave back 47 cents to $33.64.

The gold sector was down 0.6 per cent as the February gold contract gained $1 to US$1,751.30 an ounce. Barrick Gold Corp. (TSX:ABX) faded 57 cents to C$53.48.

The March copper contract was off three cents at US$3.55 after the lending news from China sent prices for the metal surging 5.5 per cent Wednesday. The base metals sector was down 0.52 per cent while First Quantum Minerals (TSX:FM) shed 75 cents to C$19.85.

The consumer staples sector led advances on the TSX with Loblaw Cos. (TSX:L) ahead 94 cents to $37.94.

There was also a reminder of the weak state of U.S. employment prospects a day before the release of the U.S. non-farm payrolls report for November.

The U.S. Labour Department said the number of people applying for unemployment benefits rose for the second straight week. Applications rose by 6,000 to a seasonally adjusted 402,000.

Economists project that employers added a net 125,000 jobs in the U.S. last month, while the unemployment rate stayed at nine per cent for the second straight month.

But there was strong data from the U.S. manufacturing sector.

The U.S. Institute for Supply Management’s manufacturing index rose more than expected in November, reaching 52.7 from 50.8 the prior month, which beat expectations by nearly a full point.

The TSX was also taken lower by earnings disappointments.

Shares in apparel manufacturer Gildan Activewear Inc. (TSX:GIL) plunged $7.03 or 28.67 per cent to $17.49 as profits fell to US$48.5 million from $56.8 million a year ago. The company also predicted a first-quarter loss on Thursday, saying its performance would be hurt by finishing up inventories that used higher priced cotton, the destocking of distributor inventory and some discounts.

And Lululemon Athletica Inc. continues to cash in on the success of its yoga-inspired fashions and accessories. The Vancouver-based retailer (TSX:LLL) saw its third-quarter profit soar by 51 per cent to US$38.8 million or 27 cents per share, beating estimates by two cents. However, it shares fell $5.49 or 10.8 per cent to $45.26 as revenue jumped 31 per cent to US$230.2 million, missing expectations by nearly $6 million.

Bombardier Inc. (TSX:BBD.B) posted net income of $192 million in the third quarter, up from $147 million in the same period last year. The Montreal-based transportation giant says revenue was up 16 per cent from its previous third quarter to $4.6 billion. Its shares were up a four cents to $3.82.

Elsewhere, power producer TransAlta Corp. said Wednesday it expects its profits to take a hit of up to $25 million from an extended outage at its jointly owned Genesee 3 power plant near Edmonton. Its shares gained 20 cents to $22.19.

European bourses were also mixed following substantial gains on Wednesday as London’s FTSE 100 index advanced 0.27 per cent, Frankfurt’s DAX was 0.45 per cent lower and the Paris CAC 40 was down 0.38 per cent.

Earlier, Asian markets earlier posted sharp gains as they caught up with the news of the central banks’ intervention. Japan’s Nikkei 225 index jumped 1.9 per cent, South Korea’s Kospi surged 3.7 per cent and Hong Kong’s Hang Seng vaulted 5.6 per cent. Benchmarks in Australia, India, Singapore and Taiwan all rose more than two per cent. In mainland China, the benchmark Shanghai Composite Index gained 2.3 per cent.